The Nigerian naira maintained a relatively stable position against the US dollar on Wednesday, March 18, 2026, as the foreign exchange market responded to a sharp rise in global oil prices and a notable increase in the country’s external reserves.
Official Market Performance
In the Nigerian Foreign Exchange Market (NFEM), the naira opened midweek trading with slight appreciation. According to real-time data from the FMDQ Securities Exchange, the local currency was quoted at an average of N1,357.23 per dollar, improving from Monday’s close of N1,357.77 and continuing a recovery from N1,366.23 recorded at the end of last week.
The strengthening of the naira in the official window is largely linked to improved liquidity and the recent announcement by the Central Bank of Nigeria (CBN) that gross external reserves have surpassed the $50 billion mark. Market analysts say the reserve buffer, alongside Brent crude prices trading above $100 per barrel due to geopolitical tensions in the Middle East, has boosted investor confidence in the naira.
Parallel Market Trends
In the informal or parallel market, often referred to as the “black market,” the exchange rate remained stable but higher than the official rate. Traders in Lagos and Abuja quoted the dollar between N1,410 and N1,415.
While the naira has strengthened in the official market, the gap between both markets stands at about N53 to N58. Bureau De Change operators noted that demand for the dollar remains among small-scale importers and individuals seeking travel allowances, although panic buying has reduced compared to previous months.
Economic Outlook
The current stability comes amid a complex economic environment. While the “oil windfall” from high global prices is providing much-needed foreign exchange inflows, domestic challenges persist. Reports indicate that a cash shortage in the power sector and rising operational costs continue to affect local producers.
As of March 18, 2026, the CBN continues its interventions in the market to ensure price discovery and reduce volatility. Experts say that if oil prices remain above the $100 mark and the $50 billion reserve level is sustained, the naira could record further marginal gains in the coming weeks.